Unifi, Inc. commenced a cash tender offer for up to $8,776,000 aggregate principal amount of its 11.5% Senior Secured Notes due 2014. Approximately $190 million in aggregate principal amount of the notes are currently outstanding.
Terms and conditions of the tender offer are set forth in an Offer to Purchase for Cash (the “Offer to Purchase”) and related Option of Holder to Elect Purchase (the “Purchase Notice”), both dated March 2, 2009. This offer is being taken pursuant to Sections 4.10(a) and 4.10(c)(B) of the Indenture dated May 26, 2006 related to the Notes, (the “Indenture”) in order to utilize the Excess Collateral Proceeds (as such term is defined in the Indenture) accumulated by Unifi.
Holders who tender notes by 5 p.m. EDT on March 31, 2009 (the “Expiration Date”), unless such time is extended, and whose notes are accepted by Unifi, will be entitled to receive $1,000 in cash for each $1,000 principal amount of notes accepted in the tender offer, plus accrued and unpaid interest from the last applicable interest payment date to, but excluding, the date of payment. Unifi will accept validly tendered notes which are not withdrawn, having an aggregate principal amount up to $8,776,000. In the event that the amount of notes validly tendered and not properly withdrawn on or prior to the Expiration Date exceeds the $8,776,000, Unifi will accept for payment from among the tendered notes on a pro rata basis.
